I agree with Joel, shooting into water is not a cool idea at all.
BUT to answer the original question YES the .17HMR is an ideal choice for foxes and coyotes.
I posted some info months ago about the .17 Caliber here is the link to that posting .17 M2 & .17 HMR <-Click

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Democracy is two wolves and a lamb voting on what to have for lunch.
Liberty is a well-armed lamb contesting the outcome of the vote.
-Benjamin Franklin